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For Groupon, Does Size Matter?

Jun 6, 2011 1:20 pm ET

By Rolfe Winkler

In daily deal land, it’s not just the size of your list that matters. It’s also what you do with it.

Part of Groupon’s pitch to merchants is that it has the biggest list of email subscribers, meaning merchants looking to drive customers through the door can benefit more from being included in a Groupon email than, say, top rival LivingSocial.

But according to David Sinsky at Yipit Data, it’s not that simple. Take the New York City market. Groupon has increased the number of deals it features every day in New York, to an average of 7 in May says Sinsky. So merchants are competing with one another for the attention of Groupon’s email subscribers….